Question

A home cleaning service has fixed monthly expenses of $1,348 and variable expenses of $7.45 per home cleaned. Determine the monthly profit if 38

homes are cleaned at a sale price of $100 per home.
O$1,348.00
O$3,800.00
$1,631.10
$2,168.90

Answer 1

To calculate the monthly profit, total revenue from cleaning 38 homes is computed as $3,800. The expenses include fixed costs of $1,348 and variable costs of $283.10, leading to a profit of $2,168.90.

Step-by-step explanation:

To determine the monthly profit for a home cleaning service with fixed and variable expenses, one needs to calculate the total revenue and then subtract the total expenses, which include both fixed and variable costs.

First, calculate the total revenue by multiplying the number of homes cleaned by the sale price per home:

Total Revenue = Number of homes cleaned × Sale price per home
Total Revenue = 38 homes × $100/home
Total Revenue = $3,800

Next, calculate the total variable expenses by multiplying the number of homes by the variable expense per home:

Total Variable Expenses = Number of homes cleaned × Variable expense per home
Total Variable Expenses = 38 homes × $7.45/home
Total Variable Expenses = $283.10

To find the profit, subtract both the fixed expenses and the total variable expenses from the total revenue:

Profit = Total Revenue - (Fixed Expenses + Total Variable Expenses)
Profit = $3,800 - ($1,348 + $283.10)
Profit = $3,800 - $1,631.10
Profit = $2,168.90